To re-mortgage is to take out a new mortgage on a property you already own.
If your existing deal is nearing the end of its term or you wish to borrow money against your property, you can either swapping deals with your existing lender or by switching to a new one – whichever provides the better deal.
So why re-mortgage? To save yourself money.
Buying a property is undoubtably the biggest investment and financial commitment most of us ever make, so why wouldn’t you shop around to get the best deal? How many times have you trawled the internet or made numerous phone calls to get the best insurance quotes or hunted around for the best deal when buying a new television or broadband services for example.
When you take out a mortgage, you normally get an introductory offer which lasts for a set period – usually 2-5 years. When this period ends, your loan automatically switches to the lenders Standard Variable Rate (SVR) – if this happens, your monthly repayments are likely to increase significantly, so it’s best to keep ahead of the game and have a new deal secured when it’s time to switch.
It may be that your current lender can give you a new offer, but with so many lenders out there, it makes sense to shop around. Some lenders charge an exit fee to leave them, sometimes a repayment charge as well, but that doesn’t mean you should stay with them, as the savings to be made by changing can be monumental.
This may sound a daunting prospect if you are thinking of doing this yourself, but as a whole of market broker, not only can liaise with your current lender and research the market to find the best possible deal for you, it’s also a free service.
To find out more and to discuss your re-mortgage requirements, please get in touch – we’re here to help.